I‘ve decided to go into business with three other girls who I met online and have since become great friends with. We all run our own businesses independently but this will be a collaboration between the four of us. I’m really excited about it because we all have different skills and I think we can all bring something different to the table.
I was wondering if you had any advice about going into business with friends (I know you’ve done it with Gala and Shauna with The Blogcademy and you all met online too!) The business idea was actually mine so I guess I’m the driving force behind it but obviously I can’t do it on my own.
My main question is how do we spilt the finances or decide who gets what? Do we split it evenly because that is the fair thing to do, even though each of us will have a different level of involvement and workload? We roughly know where everyone’s strengths lie and even though it will totally be a team effort, it was my idea. Some of the others are more driven towards the networking and exposure that this venture might bring rather than the money but at the same time, I don’t want it to ever become awkward with the potential of someone not pulling their weight because they aren’t getting paid.
On the flip side, if we split everything equally, I’m worried that it wouldn’t really be fair if one person ended up doing a lot more work but only took the same as everyone else. What do you guys do and how would you suggest we work this out so we can take it forward?
There is also bound to be an initial investment involved with the business so how do we go about sorting out who is going to cough up initially? Should it be me as the captain of the ship!?
We know what we want to achieve we just can’t work out what the fairest way to split the income is and to make sure we don’t fall out in future. Any help or advice would be greatly appreciated!
Launching The Blogcademy was a huge and steep learning curve for Gala, Shauna and me but sharing the success together has been the most satisfying thing ever. I mean, what’s the point of having it if you haven’t got someone to share it with?! It’s been far from smooth sailing, but I’m pleased to say that we are yet to have an argument (touch wood!) and our friendships have, if anything, only gotten stronger through working together.
It’s only been ten or so months since we launched the business but the amount we’ve learnt has been astounding! In fact I could talk about it all for days as there are so many things to consider. However I don’t want to overwhelm you, so instead, here are the four biggest lessons we’ve learnt along the way… and yes, how to deal with the finances is a big one!
Have a contract
This sounds all official and scary but it doesn’t have to be. In fact we didn’t even think about this until the night before our first class when we were sharing horror stories about mutual acquaintances that had fallen out when they went into business together! So we scribbled something down on a piece of paper and all signed it. I think it basically said “I won’t screw my friends over, steal all the money or try to sue for half the business if I decide to leave…” It probably wasn’t the most watertight contract but if the worst did happen in those early days it would have given the business (and us as individuals) some kind of protection.